For physicians who would rather not think about it.
Corporate and personal tax, bookkeeping and remuneration planning for medical professional corporations, handled by a chartered accountant who works with practising physicians.
The corporation is a tool. It has to be used properly.
A medical professional corporation changes how income is earned, taxed and taken out, and the advantage only holds if the salary, dividends and reserves are planned deliberately each year.
We handle the corporate return, the personal return and the remuneration mix together, so the two are not optimised against each other.
What these businesses actually need.
Professional corporation
T2 return and year-end for the medical professional corporation, filed with the remuneration already decided.
Personal return
Your T1 prepared alongside the corporation, so salary, dividends and instalments line up.
Practice books
Billings, overhead and associate splits reconciled monthly rather than at year end.
Planning and forecasting
Cash flow, tax reserves and buy-in or expansion decisions modelled before they are committed.
The issues that come up most.
Salary versus dividends
The right mix depends on RRSP room, CPP, income splitting rules and the corporation’s small business limit. It changes year to year.
Passive income
Investment income inside the corporation can grind down the small business deduction, which is worth planning around rather than discovering on the return.
Overhead and associate arrangements
Splits with a clinic or associates need to be recorded correctly, because the CRA treats the arrangement as written and as practised.
Three steps, no surprises.
Review the structure
Corporation, shareholdings and remuneration reviewed against how you actually earn.
Run the year
Bookkeeping current, instalments set, tax reserve held rather than assumed.
File both returns
Corporate and personal returns prepared together, with next year’s mix already set.
The ones we get asked most.
Is a medical professional corporation still worth it?
For most physicians earning more than they need personally, yes, because tax is deferred on income left in the corporation. The advantage shrinks if you draw everything out each year.
Can I split income with my spouse?
The tax on split income rules restrict this significantly for professional corporations. There are still situations where it works, and they need to be assessed rather than assumed.
What is the passive income grind?
Investment income above $50,000 a year inside an associated group starts reducing the small business deduction, and it is eliminated at $150,000.
Do I need to pay instalments?
Usually yes, both corporately and personally, once tax owing passes the threshold. Missing them creates interest charges that are entirely avoidable.
Can you work with my existing bookkeeper?
Yes. We often take the year end and tax work while an in-clinic bookkeeper handles day-to-day entry.
Licensed, certified, and accountable for it.
The bodies that license this practice, and the certifications behind the day-to-day work.
CPA Ontario
The provincial body that regulates Chartered Professional Accountants in Ontario.
EFILE certified
Certified by the Canada Revenue Agency to file returns electronically on behalf of clients.
Intuit ProAdvisor
Intuit certification covering QuickBooks Online setup, reconciliation and reporting.
QuickBooks Payroll
Intuit certification for running payroll, deductions and remittances inside QuickBooks.
In their words.
Aaron has done my personal taxes for six years and he’s the best. My files are sometimes complicated and I was not always the most organized client, yet he handles all of it without ever making me feel bad about the mess. He’s fast, he explains everything in plain English, and he always finds credits I would have missed.Shmuel Neft
Working with Aaron and his team, especially Anna, has been fantastic for both our camp operations and Prime Coat Painters. From complex contractor billings to seasonal accounts and corporate taxes, they handle everything with real attention to detail. If you need a reliable, top-tier accounting team for your business, I can’t recommend Aaron Herman CPA highly enough!Tzadi Zlotnick, Prime Coat Painters Inc.
I use him for personal and business accounting. He is absolutely phenomenal with his work and expertise. Thorough, reliable, dependable, and punctual with due dates. I’ve worked with many accountants previously and Aaron surpassed them all in everything on my list.Elior Zipori, Zipori Landscapes & Design
We have been using Aaron Herman CPA for about four years now and we are very happy with their services. Anna is especially great to work with. She is on the ball, always up to date, and gets back to you right away with any questions or concerns.Reuven Durbach
Very happy with Aaron’s service. He is very knowledgeable and professional. Very patient with all my questions, ready to answer and be with the client within a short period of time. All the accounting service is done in a timely manner.Artem Artemov, Rimland
Aaron is excellent! He responds quickly, explains everything clearly, and makes the whole tax process easy and stress-free. He is very knowledgeable and always helps find the best way to get everything done properly.Mai Edry
Aaron is an amazing accountant! He is very supportive and great at explaining the ins and outs of what was needed when expanding my business. I highly recommend Aaron and his team!Leah Lomiansky, Speech Volumes Therapy
He is knowledgeable, thorough and effective. He is very responsive and takes great care of his clients. I highly recommend him and his services!Rachel Danzinger, Learning Pods
Absolutely love Aaron and Anna. They are fantastic to work with, go above and beyond, and their communication and dedication is unsurpassed.Fat Cat Cookie Co.
Two people. Trusted with your year.
Aaron Herman
CPA, CA · Founder and Managing Partner
Aaron planned and prepared tax in public practice, then led financial reporting inside large Canadian companies. He is the person who answers when you call.
My number one priority is a happy client.
Anna Herman
Director of Finance and Operations
Anna runs the machinery behind the work: cloud accounting, CRA compliance, payroll and client onboarding. If your year-end is uneventful, that is Anna.
Order creates opportunity.
Tell us where your year stands.
Send the form and Aaron will come back to you directly. If it is easier, call. Someone here answers.